Madagascar Oil announces that an updated Company Presentation is now available, on the Company's website, which includes new information on the Company's operations, development and exploration. A full update is set out below.
- Cumulative oil production has now exceeded 32,000 Barrels total from the cyclic phase of the Steam Flood Pilot ("SFP") with 13,776 Barrels in Tsimiroro Field Storage Tanks as at 30 November 2013, with the remainder having been used for fuel for steam generation. Average oil production for November 2013 was 253 barrels of oil per day. Improvements in oil production rates are still being noted in wells subjected to their third huff and puff cycle. Increases in steam injection rates in the designated injection wells have been achieved through increased injection pressures. Two injection wells in the PSF-11 pattern have achieved peak steam injection rates of over 300 barrels of water equivalent per day. Four injection wells have been subjected to continuous steam injection as the SFP moves into the steam-flooding phase.
- Steam generation was shut down at the end of November for 10 days to allow the safe drilling of two new temperature observation wells, designed to provide an accelerated steam flood insight in the PSF-11 pattern. Full reservoir section cores were successfully obtained in both wells. The third steam generator passed a pressure test in November to achieve Ministry pressure certification. Work continues to replace the steam generator control software to increase operability and reliability on commissioning of the two offline steam generators. The two commissioned steam generators have achieved an average uptime of 85% during September, October and November 2013.
- Core analysis is to be conducted on the recently obtained samples in order to confirm oil saturations pre-steam flooding. A follow up cored well will be considered for drilling when steam has been shown to have passed through the temperature observation wells to arrive at a post flood oil saturation. This is designed to assist in substantiating ultimate oil recovery potential in the Tsimiroro Field under steam flood conditions.
Tsimiroro Field Development Planning
- Work proceeds on preparation of the Full Field Development Plan by the Tsimiroro Development Planning Team with the pre-requisite Declaration of Commerciality on track for a February 2014 submission. Definition of an initial Phase 1 Area centred around the existing SFP wells and facilities is progressing with initial local export markets and routings being defined. Work also continues on marketing studies to allow a firm understanding of the international markets available to Tsimiroro crude.
- The Saybolt Crude Assay results, received in October 2013, confirmed Tsimiroro as a sweet, heavy low wax content crude with an API gravity of 15° API. Tsimiroro Crude Oil Markets, both local and international, have been identified for refinery, power generation and marine fuel oil use. Blending trial results to meet fuel standards for potential Madagascar power generation have been conducted by in-country downstream suppliers with additional sampling and trials being planned.
- Data consolidation and re-interpretation is now complete across Licence Blocks 3105, 3106 and 3107. Two field trips in the third quarter of 2013 returned with quality outcrop samples for reservoir and source rock validation and basin modelling study work. A seismic infill programme is in the process of being defined to provide better definition on the Block Leads and Prospects.
- A Farm-out campaign of the licenses was launched at Africa Oil Week in Cape Town at the end of November 2013 with initial data room entrants being scheduled for later this month and early next year.
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